BAKU, Azerbaijan, June 24. The ratio of
Azerbaijan’s total market capitalization to gross domestic product
(GDP) has risen by around one percentage point, reaching close to
4%, following the initial public offering (IPO) of PASHA Bank,
Trend's
correspondent reports from the event.


Speaking at the “Opening Bell” ceremony marking PASHA Bank
OJSC’s public share offering and the start of secondary market
trading, Ruslan Khalilov, Chairman of the Board of Directors of the
Baku Stock Exchange (BSE), said the transaction signals a new phase
in the development of the country’s capital markets.


He noted that the IPO, along with another listing over the past
three years, reflects growing momentum in Azerbaijan’s equity
market development.


“The successful placement of the second IPO in the last three
years in a country with over 30 years of capital market history
allows us to say with greater confidence that the Azerbaijani
capital market is entering a new stage characterized by expansion,”
Khalilov said.


He added that the Central Bank of Azerbaijan has played a key
role in building the market ecosystem, particularly through
improvements to the regulatory framework and the provision of
technological and expert support.


According to Khalilov, the Baku Stock Exchange and the National
Depository Center have also contributed significantly in recent
years to strengthening the technological and institutional
foundations of the capital markets.







“In the past three years, substantial work has been carried out
to develop technological systems for capital markets, ensure
integration with market participants, and improve listing
procedures, trading admission, market organization, and other
regulatory mechanisms,” he said.


Khalilov also praised the execution of PASHA Bank’s IPO, calling
it highly professional and well-structured, particularly in terms
of investor communications and the presentation of financial
indicators. He said this is expected to have a positive impact on
secondary market trading of the shares.


He further highlighted the macroeconomic significance of the
offering.


“Until now, Azerbaijan’s market capitalization-to-GDP ratio
stood at approximately 2.7–3%. As a result of PASHA Bank’s IPO,
this indicator has increased by around one percentage point,
approaching 4%,” he said.


Khalilov also expressed appreciation to investment firms and
market participants involved in the offering, including PASHA
Capital, ABB Invest, and Unicapital, noting that the IPO represents
a broader success for the market rather than a single
institution.